COMPETITORS
Over 100 years, intense rivalry between the two- Coke and Pepsi has totally shaped the soft drink industry of the world (combined they are 73% of the market share). The most battles of the cola wars were fought over the industry in the USA, where the consumption by an average American is 53 gallons of carbonated soft drinks per year. In a competitive struggle, from 1975 to 1995 both had achieved average annual growth of around 10% because of increase in soft drink consumption consistently in US and worldwide. Then this cozy situation was threatened in the late 1990s, when the consumption dropped for two consecutive years and worldwide shipments slowed for both Coke and Pepsi.
Globalization provides both with unique challenges as
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Thus, it is important for the brand to have a good reputation in order to have high demand. Pepsi has always focused in building good customer relationship and have successfully done it, despite being in a highly competitive market. But, damage can be caused through various other sources like indulgence in legal issues by the brand or even depletion quality. Pepsi is involved in legal battles from a long time and do not seem to come out of it any time soon. Also, being a part of the beverages sector it is imperative for the brand to maintain its quality and Pepsi has always kept quality as its top priority.
3.) Aging and other factors Age of a person has a direct impact on the lifestyle of a person. Since, Pepsi does not have control over this factor it focuses on the segment of market it already has, that is, the millennials. For doing this, Pepsi comes up with innovative and out of the box marketing ideas time to time.
4.) Economic and legal
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In case of shortage of the raw materials the prices have to be increased in order to match the expected the expected revenue which further brings down the demand. Similarly, natural calamities also affect the demand sometimes in the same manner.
6.) Cultural factors
To make its place in a society, a brand has to connect with the social values prevailing in the culture. Pepsi is currently associated with the western culture and is trying to make its place in the eastern one too. Various cultures hold different perceptions which have to be assessed carefully by Pepsi to localize its brand in new cultures.
ECONOMIC AND NON ECONOMIC GOALS OF PEPSI
1. Sales Maximization: Sales Maximization involves business charging lower price to capture a large market share. Profit is a goal of the firm but it gives more priority to sales maximization as its efficient management and cost reduction has already given them much profits. Pepsi owns more than 25% of the market shares and also dominates the sales market. So, it marks its price in such a way that it is pocket friendly for the consumers. In order to promote sales maximization, it aims to have a strong market position and launches its products in more than 200
The soft drink industry is one of the most highly profitable industries in the USA. Also, the competitive market is a very large market. Americans consumed about 53 gallons of soft drinks per person a year in 2000 by $ 60.3 billion!! Comparing with the market in 1990, since it was 47 gallons. In recent years, the market growth has slowed.
PepsiCo. Incorporated and The Coca-Cola Company are the two largest and oldest archrivals in the carbonated soft drink (CSD) industry. Coca-Cola was invented and first marketed in 1886, followed by Pepsi Cola in 1898. Coca-Cola was named after the coca leaves and kola nuts John Pemberton used to make it, and Pepsi Cola after the beneficial effects its creator, Caleb Bradham, claimed it had on dyspepsia. The rivalry between the soda giants, also known as the "Cola Wars", began in the 1960’s when Coca-Cola's dominance was being increasingly challenged by Pepsi Cola. The competitive environment between the rivals was intense and well-publicized, forcing both companies to continuously establish and
The existing concentrate business is largely controlled by Coca-Cola Company (Coca-Cola) and PepsiCo (Pepsi), together claiming a combined 72% of the U.S. carbonated soft drink (CSD) market sales volume in 2009. Refer to Exhibit 1 for an illustration of the CSD industry value chain. For more than a century, Coca-Cola and Pepsi have maintained growth and large market shares through mastering five competitive forces, shown in Exhibit 2, that drive profitability and shape the industry structure.
For more than a century, Coca Cola and PepsiCo have been the major competitors within the soft drink market. By employing various advertising tactics, strategies such as blind taste tests, and reward initiatives for the consumer, they have grown to become oligopolistic rivals. In the soft-drink business, “The Coca-Cola Company” and “PepsiCo, Incorporated” hold most of the market shares in virtually every region of the world. They have brands that the consumers want, whether it be soft-drink brands or in PepsioCo’s case, snacks. With only one soft-drink market, the two competitors have no choice but to increase sales by stealing the other competitor’s clients. This led to the term, the “cola wars” which was first used
Beneficial of pay attention to market trends and to keep with local tastes. Celebrities appeal makes for exceptional advertising. And finally it pays to keep up with merging trends in the market.
Pepsi’s has a large number of product lines and brands and thus the prices are considerably varied. Their main pricing strategy is based on the Market-Oriented pricing strategy to ensure that its prices are competitive as compared to the competitor’s prices and market conditions. Pepsi also used
As we all go about our day, we rush to place to place. Around us there are things for sale, people everywhere trying to make money. As we are rushing around, we all tend to get thirsty as we have a thousand things going on. In America we have dozens of choices when it comes to soft drinks, although the two most widely known are Coca-Cola and Pepsi. Many are often stuck between choosing Coke or Pepsi; even though they are slightly different in appearance, taste, and price it makes a world of difference to the customer.
The rivalry between coke and Pepsi is legendary and not just only product development and occasionally get personal collusions which sometimes resonate their marketing and promotional activates.
One of the strengths that can be found in PepsiCo is in term of strong brand equity. PepsiCo has a strong brand name in the world place and the company is well-known worldwide. This company is the best global brand in the world in terms of value of net revenue $43,251 million in the year of 2008. The company has a very recognized and
In an industry dominated by two heavyweight contenders, Coke and Pepsi, in fact, between 1996 and 2004 per capita consumption of carbonated soft drinks (CSD) remained between 52 to 54 gallons per year. Consumption grew by an average of 3% per year over the next three decades. Fueling this growth were the increasing availability of CSD, the introduction of diet and flavored varieties, and brand extensions. There is couple of reasons why the industry is so profitable such as market share, availability and diversity and brand name and world class marketing.
These two-company’s economic characteristic include their market size and growth rate from the early 2000’s to 2010. Coke and Pepsi have struggled for years in the carbonated and non-alcoholic sector. According to Barbara Murray (2006c) "But as the pop fight has topped out, the industry 's giants have begun relying on new product flavors and looking to noncarbonated beverages for growth.” (Murry, 2006). For instance, Coke boasts in the advertisement as the king of the soft drink; as a consumer of both products, I agree. About 15 years ago, I was selected to participate in a critiquing of Coke and Pepsi products. Additionally, my travel to Africa in 2007 and 2010 provided the same raving review for the Coke Cola products. Apparently, Coke and Pepsi have been rivals for ages locally, regionally, nationally, multinational, and globally, therefore, one expects them to have an on-going rivalry when marketing the high-energy beverages.
Pepsi Co started in 1965 and became one of the world 's highest end user product businesses with a number of important and precious trademarks (Bongiorno, 1996, p 70).
The most significant challenge that faces Pepsi is how to continue to produce in popular dark carbonated beverage indefinitely, but also diversify its product line sufficiently enough to capture as much market share as possible as the new non-carbonated trend continues to gain in consumer salience.
Pepsi-Cola brand is a brand that has been established within the refreshment industry since the 19th century. Pepsi pride the business of consumer products in beverages and snacks, on being one of the best in the world. They seek
Pepsi Co 's assignment taken as a whole is to amplify the value of its shareholder 's investment through sales intensification, expenditure gearshift and prudent investment of resources (Bongiorno, 1996, p 71). In this pose, Pepsi believes that its moneymaking triumph depends on providing safe and quality drink to its consumers and customers while adhering to the highest standards of truthfulness. Pepsi Co 's product portfolio encompasses sixteen labels that produce enough cash for the company. The most popular of these brands include Pepsi Cola, and Mountain Dew.